Discovery Upfront Attracts Wall Street Interest

Amidst all the hubbub of whether a network should hold an upfront, one of the arguments for it, some say, is that the press helps build public buzz. Now, a well-known Wall Street analyst has come out as a proponent, at least for one network group.

"While we normally do not get excited about upfronts," wrote Pali Research's Richard Greenfield in a report Tuesday, "the significant reprogramming/repositioning of Discovery's networks will make this year's upfront particularly important."

Greenfield cited a hunger to gain more insight into the run of makeovers new CEO David Zaslav has brought to a slew of channels. Discovery Home is becoming Planet Green this summer, focused on protecting the environment. Discovery Health will become the "Oprah Winfrey Network" (or OWN), with the entertainer owning 50% and serving as the top executive.

Also on the list is the recent switch of Discovery Times to Investigation Discovery; a new look for Animal Planet and focus on adults 25-to-54; and the same type of repositioning for the Science Channel.

advertisement

advertisement

Discovery's upfront will be held April 23, presumably as the company is expected to become fully public only weeks after. Greenfield touted the move as a way for investors to gain greater insight into the company and "access to management," while providing leverage for acquisitions. (The current holding company does not hold earnings calls.)

Separately in his report, Greenfield wrote that Discovery could be on the brink of a significant revenue infusion from renegotiating more favorable deals with cable and satellite operators this year. He says the less than 75 cents per sub for Discovery, Animal Planet and Travel Channel (which Discovery manages, but no longer owns) is "relatively low."

Further potential gain comes from the rebranded networks, particularly OWN. Greenfield notes: "Who wants to be the cable/satellite provider that does not carry the Oprah Winfrey Network?"

Next story loading loading..